New Zealand Dollar Near Lows Despite Business Confidence Boost

The New Zealand Dollar (NZD) is holding near its lowest levels as business confidence in the country improves, but pricing pressures ease. A survey by the New Zealand Institute of Economic Research (NZIER) found that a net 43% of firms expect business conditions to improve, up from just 8% in the previous survey. However, the survey also revealed that fewer firms are raising prices, which could reduce inflationary pressures.

The Reserve Bank of New Zealand (RBNZ) raised its Official Cash Rate (OCR) to 2.75% in September, and traders are betting on a third hike on October 28. The RBNZ Governor, Breman, is scheduled to speak on Thursday, which could provide further insights into the central bank's stance. The upcoming Consumer Price Index (CPI) data on October 21 and the general election on November 7 are also key events to watch.

On the technical side, NZD/USD is trading just above 0.5600 after hitting a fresh low beneath it. Resistance is seen at 0.5650, while support levels are at 0.5600, 0.5550, and 0.5500. The bias remains tilted lower below 0.5650, targeting 0.5550 first and then 0.5500.

The US economic calendar is also packed with important data releases, including private-sector jobs data, Fed minutes, and jobless claims. These events could influence the strength of the US Dollar and, consequently, the NZD/USD pair.